东海证券晨会纪要

Group 1: Battery and Energy Storage Industry - The virtual power plant peak regulation has been implemented, increasing the heat of grid-type energy storage. Major operators like State Grid and Telida are participating in power spot trading with a total adjustable capacity of approximately 300MW. From June 1 to 23, 2024, the retail sales of new energy vehicles reached 534,000 units, a year-on-year increase of 19% and a month-on-month increase of 7%, with an expected total sales of 11.5 million units for the year, up 20% year-on-year [34][35] - The supply side of the industry is adjusting in an orderly manner, stabilizing prices. Lithium salt prices are fluctuating due to supply-demand negotiations, while the price of lithium iron phosphate is at the breakeven point. The demand for graphite anodes is slightly improving, but prices remain near cost levels. The demand for separators is stable, and the overall demand for electrolytes is steady, although prices are declining due to capacity impacts [34][36] - The energy storage sector is experiencing short-term low-price competition, with a focus on large-capacity cell mass production and the rising popularity of grid-type energy storage. The industry is expected to see significant advancements in large-capacity cells and modular PCS systems [36] Group 2: Pharmaceutical and Biological Industry - The pharmaceutical and biological sector has shown a decline of 3.48% in the past week, underperforming the CSI 300 index by 2.51 percentage points. Year-to-date, the sector has decreased by 21.09%, also lagging behind the index by 21.98 percentage points. The current PE valuation for the sector is at 24.1 times, which is historically low [22][40] - The National Medical Insurance Administration has initiated the adjustment of the 2024 National Basic Medical Insurance Drug List, which includes extending the application conditions for drugs approved after January 1, 2019, and enhancing supply guarantee management for drugs that have not been supplied for nearly three years [39][40] - The overall performance of the pharmaceutical sector remains weak, with a recommendation to focus on high-quality stocks in high-growth sub-sectors, particularly innovative drugs, branded traditional Chinese medicine, blood products, and specialty raw materials [40] Group 3: Fixed Income and Asset Allocation - The domestic interest rate bond market has strengthened again, with the 10-year government bond yield closing at 2.21%, down 34 basis points from the beginning of the year. The market is supported by a manufacturing PMI of 49.5, which has been below the growth line for two consecutive months [7][14] - The net financing of local government bonds is expected to total 22,739 billion yuan in the third quarter, with a projected peak in government bond supply. However, the effective continuation of project reserves needs to be monitored [13][25] - The current environment of high dividend ETFs has seen a rise of nearly 7.5% in H1 2024, outperforming the broader market index by approximately 6%. The bond market is also experiencing a bull market, with the 10-year and 30-year government bond yields down by nearly 35bps and 40bps, respectively, since the beginning of the year [5][7] Group 4: RF Switch and Amplifier Market - The company holds a leading position in the domestic RF switch market, with a global market share of 5% in 2020, ranking fifth. The RF market is expected to reach a size of $31.31 billion in 2023, growing by 15.02% year-on-year [3][41] - The company has achieved full coverage in its low-noise amplifier (LNA) business, supporting all frequency ranges for 5G sub-6GHz. The combination of its leading position in switches and comprehensive layout in LNAs positions the company well for market expansion [3][41] - The RF front-end module market is expected to grow, with the company increasing its revenue share from module business significantly, reaching 36.34% in 2023. The company is expanding its product offerings from receiving modules to more complex transmitting modules [42][43]